Surety Bonds

To Become an Admitted Reinsurer of Surety Companies Doing Business with the United States
(Except on Excess Risks Running to the Government)

Thank you for your interest in the requirements of the Treasury which must be observed before a company may qualify as an Admitted Reinsurer (except on excess risks running to the United States) of surety companies doing business with the United States.

Please refer to 31 C.F.R. Section 223.12(Department Circular 297) for the requirements for recognition as an Admitted Reinsurer. Required certification of documents other than the FinancialStatement, should be currently dated, that is, not more than six months old. Section 223.22 provides for a fee to be imposed for the examination of a company's application for recognition as an Admitted Reinsurer.

Please let us know if we can be of further assistance. We can be reached at (202) 874-6850.

To apply for Admitted Reinsurer status, a company must:

(A) Meet the requirements set forth in :

1. 31 C.F.R. 223 (Circular 297); and
   
   
2. Annual Letter of instructions.(48 KB)

(B) Submit application fee of $2,835. (This fee is subject to change every December 31.) You must payon-line .

(C) Listed below are the documents required to be submitted when the company is applying with this Department. There are forms that must become a part of the application and they can be downloaded.

(D) Submit the following documents to:
Department of the Treasury - FMS
Surety Bond Branch
3700 East West Highway, Rm. 6F07
Hyattsville, MD 20782

A. Application by a U.S. Company

1. A written request for recognition as an Admitted Reinsurer, signed by an Officer of the company. This request is acceptable on company letterhead.

This letter should also indicate: (a) the reason for applying for Admitted Reinsurer status; (b) whether or not the Company had ever applied with the Department before; (c) whether or not the Company had ever been Treasury approved before; and (d) the dates applicable; and (e) the reason for termination of its Treasury approval.

2. A certified* copy of the company's Charter or Articles of Incorporation with all amendments as of the application date from which it is readily ascertainable that the company may write reinsurance, as well as the legal name of the Company.

3. A certified* copy of the Company's license in its State of Incorporation from which the company's authority to write reinsurance and/or other lines may be determined.

4a. A certificate listing the names of the Company's current officers and directors (as of the application date).

b. Biographical sketches (preferably on the NAIC approved form, signed and notarized within six months of date of application) of each officer and director. The data should indicate that the company has employees with expertise in various critical areas - underwriting, claims, reinsurance, accounting, etc. The biographies should include:

(1) The names of all prior surety and other business affiliations including the nature of the business/industry unless evident from the Company name.

(2) A list of any companies affiliated with in the past that have been placed in liquidation or receivership; and

(3) A list of any criminal convictions or a statement indicating "no criminal convictions".

5a. A list of the names and post office addresses of holders of more than 5% of the company's stock and the number of shares held by each. The financial statements of corporate owners should be provided. If privately held, the ultimate individual owners must be identified. Biographical affidavits of owners should be submitted if they were not provided under item 5.

b. If the company has been recently acquired, detailed information relative to the financing of the acquisition should be provided.

c. Any intention of future acquisition activity or mergers in which the company is involved in any capacity should be disclosed.

6a. Annual Financial Statements as of December 31 for the last two years preceding the date of the application on the form prescribed by the National Association of Insurance Commissioners, with all schedules and exhibits completed. Each year's statement is to be manually signed (facsimile signatures are not acceptable) by:

(1) The President;
(2) The Secretary of the company; and
(3) A Notary Public who shall also affix a notary seal.

b. Annual Statement diskettes must be in accordance with the guidelines specified in the NAIC Annual Statement Diskette Filing Specifications. Please note that this Department must be notified if the Company's disk is rejected by the NAIC or faulty in any way.

c. An Annual Statement (and diskette) should be furnished for each insurance subsidiary and for each non-insurance subsidiary, an independently audit financial statement or one certified by an officer of the controlling company, as of December 31 of the latest preceding year, to support the stock value of such subsidiaries.

7. A Quarterly Financial Statement (and diskette) as of the close of the most recent quarter, when one or more quarters have elapsed since the end of the year. Should an additional quarterly period expire while the application is under consideration, current Quarterly Statements should be furnished as soon as available. Also, contingent liabilities should be disclosed on the Quarterly Statement.

8a. Report of the most recent examination (within the last three years) of the Company's financial condition and affairs, which was made by the domiciliary Insurance Department.

b. Most recent C.P.A. Report, Report on Internal Control, and Management Letter, including information relative to any exceptions taken by the auditors and related Management comments.

c. The Company's 10K Report if the Company files with the SEC.

d. Management's Discussion and Analysis as of the most recent year-ended.

9. The latest IRIS ratio results (calculated by the NAIC).

10. A memorandum on the Company's method of operation, including underwriting lines of business written and underwriting and claims philosophy.

11. A payment in the amount of $2,835 covering the fee prescribed in 31 CFR 223.22(a). (This fee should be submitted at approximately the same time as the rest of the application documents.)

You must Pay On-Line at www.fms.treas.gov/c570.

This fee is subject to change each December 31.

B. Application by a U.S. Branch of an Alien Company

In addition to items (1) through (11) of Section A, the following should be submitted:

Evidence satisfactory to the Treasury to establish that the Company has on deposit, in the United States, not less than $250,000, available to its policyholders and creditors in the United States.

Please contact the Surety Bond Branch at (202) 874-6850 if you have any questions regarding your application.

*NOTE: Required certification of documents should be currently dated (certified within six months of date of application). Certifications must be obtained from the Company's State of Incorporation's Department of Insurance, unless otherwise specified.

Paperwork Reduction Act and Privacy Act Statement

By authority of 31 U.S.C. 9304-9308, 31 CFR, Part 223, the information requested in this form is required to obtain a benefit and to determine if your company meets all qualifications to be recognized by Treasury as an Admitted Reinsurer. Failure to provide the information will result in denial of certification.

Burden Estimate Statement

The estimated average burden associated with this collection is 18 hours per respondent or record keeper, depending on individual circumstances. Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the Financial Management Service, Facilities Management Division, Property & Supply Branch, Ardmore East Business Center, 3361-L 75th Avenue, Landover, MD 20785, and the Office of Management and Budget, Paperwork Reduction Project (1510-0057) Washington, DC 20503.

(Rev. 5/27/99)

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